This is what the shareholding structure of Israel Canada (TR) Ltd (TLV:ISCN) looks like

The large shareholder groups of Israel Canada (TR) Ltd (TLV:ISCN) have power over the company. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. I like to see at least a little insider ownership. As Charlie Munger said “Show me the incentive and I’ll show you the result”.

With a market cap of ₪5.4 billion, Israel Canada (TR) is a decent size, so it’s probably on the radar of institutional investors. In the chart below, we can see that institutional investors have bought the company. We can zoom in on the different ownership groups, to learn more about Israel Canada (TR).

Check out our latest analysis for Israel Canada (TR)

TASE: Breakdown of ISCN ownership February 28, 2022

What does institutional ownership tell us about Israel Canada (TR)?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

As you can see, institutional investors hold a sizeable share of Israel Canada (TR). This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking Israel Canada’s (TR) past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

earnings-and-revenue-growth
TASE: ISCN Earnings and Revenue Growth February 28, 2022

Israel Canada (TR) is not owned by hedge funds. Estate of Ben David Ohayon Abraham is currently the largest shareholder, with 20% of the outstanding shares. The second and third largest shareholders are Barak Rosen and Asaf Touchmair, with an equal number of shares to their names at 17%. Barak Rosen, who is the second largest shareholder, also holds the title of managing director.

After digging a little deeper, we found that the top 3 shareholders collectively control more than half of the company’s stock, implying that they have considerable power to influence company decisions.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. Our information suggests there is no analyst coverage of the stock, so it is likely little known.

Israel Canada Insider Property (TR)

The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

Our information suggests that insiders hold a significant stake in Israel Canada (TR) Ltd. It is very interesting to see that insiders hold a significant stake of ₪1.9 billion in this ₪5.4 billion company. Good to see this level of investment. You can check here if these insiders have bought recently.

General public property

The general public, including retail investors, owns 16% of the company’s capital and therefore cannot be easily ignored. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

Our data indicates that private companies own 24% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Next steps:

I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. Be aware that Israel Canada (TR) displays 3 warning signs in our investment analysis and 2 of them are potentially serious…

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.